With markets rattled by tariffs, inflation and volatility, investors are turning to tangible assets. Investment expert Garth Friesen reveals which luxury collectibles – from Swiss watches to fine wine and vintage cars – offer real value in 2025...
The first half of 2025 has been turbulent for many investors. Stocks fell 20 per cent after Donald Trump’s reciprocal tariff announcement, and government bond yields surged 0.5 per cent, making borrowing costs for consumers and the government more expensive. Inflation expectations rose, pushing safe haven assets such as gold to all-time highs. While markets have since rebounded, the recent volatility has left investors seeking alternatives, and the idea of putting money into collectibles – long popular with superyacht owners – is gaining renewed interest.
Thanks to online platforms offering fractional ownership and retail-focused funds that provide diversified exposure, investing in collectibles is more accessible than ever before. The collectibles market has long served as a store of long-term value; while the idea of investing in niche sectors and products has existed for decades, low interest rates and the trillions of pounds of stimulus money stemming from the Covid-19 pandemic gave the market an unexpected boost, causing prices to increase sharply.
The momentum stalled as interest rates jumped from zero per cent to more than five per cent, drawing capital back to traditional assets. Some collectibles dropped 30 per cent to 40 per cent from their highs, while others have held steadier, and for a few opportunistic investors, this correction may present a compelling value opportunity, begging the question: What’s worth putting the deposit down for now?
Luxury watches
The major Swiss players such as Rolex, Patek Philippe and Audemars Piguet dominate the luxury horological market. These brands are known for their quality, precision and long history of watchmaking. Yet, from an investment perspective, most watches – even from these elite makers – don’t often go up in price after purchase. While regular retail price hikes help support secondary values, not all models consistently trade at a premium to their original cost.
Among watches in current production, the Rolex Daytona, GMT-Master II and Submariner are notable standouts, often selling above retail due to tight supply and strong demand. Patek’s Nautilus and Aquanaut lines, as well as Audemars Piguet’s Royal Oak models, are similarly resilient as they benefit from a unique combination of scarcity, hype and brand prestige.
The industry at large, it could be said, is currently experiencing a hangover of sorts. Many brands took advantage of the recent boom by raising retail prices, but when the market softened, those inflated price tags alienated or discouraged potential buyers. The WatchCharts Overall Market Index, which tracks 300 models from 10 major brands, is up 21.3 per cent over five years – but still down over 30 per cent from its March 2022 peak.
As the broader market struggles to find a bottom, vintage watches with provenance continue to attract auction interest. Unique models tied to historical events or celebrity ownership tend to generate the highest premiums due to their rarity and backstory.
The returns from certain independent watchmakers are even more impressive. For example, F.P. Journe’s early pieces and Naoya Hida’s hand-finished designs have seen a surge in value. With a total production of between 100 and 1,000 watches per year and long waiting lists, these pieces offer more than financial upside – they offer exclusivity, and virtually all of their models now trade well above their retail price.
From a purely investment perspective, the best value is achieved by forming a relationship with an authorised dealer or directly with an independent watchmaker to avoid paying a premium for desirable models in the secondary market. But patience is advised; it could take some time to get an allocation.
Art
Fine art has long combined beauty with investment potential. Works by artists such as Monet, Warhol and Banksy have provided solid long-term returns – between eight per cent and 12 per cent annually – while showing lower volatility than equities and low correlation to other asset classes.
But like other collectible markets, art prices have softened recently. Global auction sales at Sotheby’s, Christie’s and Phillips declined 48 per cent from $7.8 billion (£5.7bn) in 2022 to $4.1 billion in 2024. According to the 2025 Wealth Report by Douglas Elliman/Knight Frank, artworks in 2024 sold for just 70 per cent of their high estimates, down from 87 per cent in 2021. The weakness is highlighted in the Art Market Research (AMR) All Art Index, which fell 27 per cent between April 2024 and April 2025.
Hope for a rebound may come via the growth of digital marketplaces. Over half of buyers now purchase art online, drawn by the transparency and accessibility it offers. Platforms like Artsy connect thousands of galleries and institutions across hundreds of countries, offering searchable price histories and educational tools for new collectors.
For investors looking to dip their toe into the water, companies like Masterworks offer fractional shares in blue-chip works to help navigate the complex and fragmented art space, making investment accessible without requiring millions upfront. What to buy? AMR CEO Sebastian Duthy advises looking beyond the big names. “With the sheen worn off blue-chip works, contemporary pieces are gaining new relevance,” he says, pointing to growing demand for emerging artists and more accessible price points.
Vintage cars
This sector has experienced steady growth over the past two decades, driven by rising wealth, an increasing appreciation for automobiles and a shift toward tangible alternative assets. Rarity and condition remain the key value drivers.
Record sales, such as the $143 million Mercedes-Benz 300 SLR Uhlenhaut Coupé in 2022, highlight investor appetite for historically significant vehicles. At the same time, technological innovation is modernising other classics. Retrofitting vintage models with electric power trains and using 3D-printed parts to replace ageing components are attracting a younger generation.
These innovations have contributed to the resilience of the vintage car market. According to the Historic Automobile Group International, the HAGI Top Index, which tracks investment-grade classic cars, has increased by 22 per cent over the past five years and is currently nine per cent below its peak in October 2022.
Online platforms are driving further accessibility, with companies such as Bring a Trailer and Rally making it easier to get involved through digital auctions and fractional ownership. Bring a Trailer alone facilitated $1.5 billion in sales in 2024. Both firms also assist investors with post-purchase issues, including transportation, insurance and maintenance.
Still, car collecting is not a passive activity. Maintenance costs are high, and restoration requires time and money. That said, vintage cars have held up better than other collectibles and continue to attract a devoted following of enthusiasts. After all, vintage cars aren’t just to be admired – they’re meant to be driven.
Fine wine
Fine wine has delivered steady returns over the long term, averaging roughly 10 per cent annually. Scarcity plays a significant role: top producers release small quantities each year, and many wines grow in value as they age, with peak appreciation often occurring five to seven years after bottling.
The wine market is also experiencing a downturn. Since October 2022, prices have declined steadily but took another leg lower following the tariff announcements in early 2025. Tom Burchfield, head of market intelligence at Liv-ex, noted that the US – the biggest buyer of EU wines – cut back sharply after Trump’s tariff warning. “The market was dealt a gut punch in March with Trump’s threat of 200 per cent tariffs on EU wine,” Burchfield says.
The Liv-ex Fine Wine 50 Index, which tracks top Bordeaux vintages, has declined by roughly 30 per cent from its 2022 peak and is down five per cent year-to-date in 2025.
Fortunately, there are bright spots. Liv-ex reports rising interest from Asia, where sentiment has improved after years of subdued demand. As prices decline and transparency improves, there is hope that new collectors may enter the market.
For beginners, first-growth Bordeaux wines such as Lafite Rothschild, Mouton Rothschild or Haut-Brion offer liquidity, brand strength and consistent demand, making them ideal entry points. These blue-chip labels should be the first to appreciate in a recovery.
What’s it worth?
Overall, the collectibles market has shown strong long-term performance across several different categories. While recent headwinds have triggered a broad correction, the structural drivers – wealth creation, global access and demand for tangible assets – remain intact.
Still, investing in collectibles comes with a set of challenges. Liquidity is limited, fees and storage can be high and transparency is inconsistent. Fraud and excessive mark-ups remain prevalent, but these risks can be mitigated through education and the guidance of expert advisors.
Each category offers a chance to blend passion with profit. But entry price is key: overpaying for even a quality asset can limit returns. Investors should focus on what they love, learn the nuances of the market and build a trusted network. In collectibles, the real reward lies in both the experience and the potential appreciation.
Read More/Christmas Gift Guide: BOAT's ultimate lux list inspired by superyacht destinationsGarth Friesen is CEO at alternative investment advisor III Capital and a former member of the NY Federal Reserve Investor Advisory Committee.
First published in the September 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.